Uber and Lyft lost their very expensive campaign to avoid some regulations in Austin, Texas — so they’re now threatening to storm out of the city altogether.
By Uber’s own estimate, the withdrawal will put more than 10,000 drivers for the two companies out of work.
The ride-share services have vowed to stop operating in the Texas capital city Monday morning because they didn’t get their way on Proposition 1, a ballot measure over how the services will be regulated.
The defeat came after the companies dumped $8.6 million into avoiding the new rules — which, according to the American-Statesman, is the most expensive political campaign in Austin history.
“The people have spoken tonight loud and clear,” Austin Mayor Steve Adler tweeted Saturday night, after the Prop 1 vote.
“Uber and Lyft are welcome to stay in Austin, and I invite them to the table regardless.”
Uber and Lyft, which are each worth several billion dollars, feuded with the Austin City Council after it passed a series of new regulations — including fingerprint background checks and “trade dress” for drivers, and a ban on picking up customers at travel lanes and bus stops.
The ride-share companies created Prop 1 and secured 65,000 signatures to put it to a vote. If it passed, Uber and Lyft would skirt the new regulations and oversee themselves. If it failed, the city’s rules would stay.
And it failed — with 56% of voters opposing Prop 1, according to Travis County Clerk results.
The companies’ temper tantrums immediately followed.
Lyft said it will “pause operations” in Austin at 5 a.m. Monday.
“Unfortunately, the rules passed by City Council don’t allow true ridesharing to operate,” spokeswoman Chelsea Wilson said in a statement.
Uber, meanwhile, said it will drive away from Austin for good at 8 a.m.
“Disappointment does not begin to describe how we feel about shutting down operations in Austin,” Austin general manager Chris Nakutis said in a statement.
“We hope the City Council will reconsider their ordinance so we can work together to make the streets of Austin a safer place for everyone.”
Uber and Lyft reps told the Daily News the companies employ more than 10,000 drivers in Austin, with many working for both services.
Uber spokeswoman Taylor Patterson told the News those drivers would be “unable to make money” starting Monday morning.
Asked if that meant they were losing their jobs, she said, “That’s exactly right.”
Uber sent a mass email to its Austin drivers after the vote, telling them, “I wish we had better news.”
“From rides to rallies, you never stopped working for the people of this city. And your dedication motivated us to do everything possible. While the road back is uncertain for now, we won’t give up on Austin,” it said.
Wilson, the Lyft spokeswoman, did not answer questions from the News about the fate of its drivers.
Neither company has announced further moves to combat regulations.
The companies created a PAC to pass Prop 1, Ridesharing Works for Austin, and poured more than $8 million into its campaign, according to finance reports. That included TV ads, mail fliers, yard signs, consultant fees and a $50,000 retainer for former Austin Mayor Lee Leffingwell to serve as a pitch guy for the ride-share services. Lyft even offered discounted rides to voters heading to the polls to vote on Prop 1.
The campaign opposing Prop 1 spent less than $200,000, according to finance records.
Uber and Lyft have routinely clashed with city governments nationwide, opposing most efforts for any form of oversight. The Pennsylvania legislature is now weighing a bill that would require ride-shares to be regulated similarly to cabs in Philadelphia — a city where Uber and Lyft have been operating illegally.
